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Introduction to Hyperion Financial Management
Introduction to Hyperion Financial Management
Mike Malwitz, Mike Malwitz,
Director, Product Strategy Director, Product Strategy Oracle Corp
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Disclaimer
Disclaimer
THE FOLLOWING IS INTENDED TO OUTLINE OUR
THE FOLLOWING IS INTENDED TO OUTLINE OUR
GENERAL PRODUCT DIRECTION. IT IS INTENDED
GENERAL PRODUCT DIRECTION. IT IS INTENDED
FOR INFORMATION PURPOSES ONLY, AND MAY NOT
FOR INFORMATION PURPOSES ONLY, AND MAY NOT
BE INCORPORATED INTO ANY CONTRACT. IT IS NOT
BE INCORPORATED INTO ANY CONTRACT. IT IS NOT
A COMMITMENT TO DELIVER ANY MATERIAL, CODE,
A COMMITMENT TO DELIVER ANY MATERIAL, CODE,
OR FUNCTIONALITY, AND SHOULD NOT BE RELIED
OR FUNCTIONALITY, AND SHOULD NOT BE RELIED
UPON IN MAKING PURCHASING DECISION. THE
UPON IN MAKING PURCHASING DECISION. THE
DEVELOPMENT, RELEASE, AND TIMING OF ANY
DEVELOPMENT, RELEASE, AND TIMING OF ANY
FEATURES OR FUNCTIONALITY DESCRIBED FOR
FEATURES OR FUNCTIONALITY DESCRIBED FOR
ORACLE'S PRODUCTS REMAINS AT THE SOLE
ORACLE'S PRODUCTS REMAINS AT THE SOLE
DISCRETION OF ORACLE.
Agenda
• Customer needs
• Solving financial consolidation and
reporting issues
• Our unique value
• Demonstration
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The Financial Consolidation Challenge
Deliver High Value and Reduced Cycle
Times
Source: Hackett Group Benchmarking-Solutions Book of Numbers
Collect data Close Adjustments
Currency I/C Subsidiaries Report Management Legal External Analyze
6
Days
12
Days
Average
Collect Close Adjustment Report Analyze and Forecast
<2
Days
6
Days
World Class
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Customer Challenges
• Financial restatements
• Inconsistent account structures
• Dozens of source systems
• Mergers and Acquisitions
• Changing disclosure requirements
• More operational data
Coming Soon: IFRS
US GAAP always more specific, plus:
LIFO OK
No LIFO
Inventory
2 Step, no reversal
1 Step, reversible
Interest rate sensitive
Impairment
Dev. Expensed
Dev. Capitalized
R&D: “Development”
Specific differences
Acquisition
Only Equity
Proportional ok
Joint Ventures
2 models
Control
Consolidation
Rare. Neg Gdwill
None
Extraordinary Items
Only certain FI
FA & Investments
Fair Market -Revaluation
US GAAP
IAS/IFRS
Enable a Streamlined Financial Close
Cycle Your Auditors Will Approve,
Year after Year
•
Finance Owned and Operated – Finance owns both: the results
and the system
•
Packaged Application – Out-of-the-box financial intelligence –
minimal ongoing consulting
•
Open and Agnostic – Data from any source, but with full
controls
•
Designed for Sarbanes-Oxley and IFRS Compliance – 1000s
of customers passing audits every year
Data Cleansing & Transfer Consolidate/Tax Internal Reporting & Analysis External Reporting & Compliance
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“There were fewer adjustments at the reporting unit level than we had expected and they
tended to be relatively minor. They mainly related to acquisitions, intangibles, leases, and
joint ventures. Adjustments at headquarters were more significant and more complex
and related to pensions, share option expenses, deferred tax, and financial instruments.
Given this relatively straightforward framework, the group was able to quickly establish a
unified chart of accounts in Hyperion Financial Management covering UK GAAP, U.S.
GAAP, and IFRS. It was then a simple matter to post the adjustments against these
accounts as required.”
“We had total visibility of the process and could instantly see the effect of changes posted
anywhere in the group. Also, if we needed to maintain the central model—for example, to
collect more data—we could effect the change, and it was immediately available throughout
the group. We could not have managed this so easily using our old business consolidation
system.”
Andrew Midgley,
Head of Financial Reporting
Pearson
Solving Financial
Consolidation and
Reporting Issues
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Oracle Performance Management
Applications
Master Data Business Rules
Metrics/KPIs
Targets, Plans & Actuals Strategic Planning
Cost and Profitability Management
Define Costing Methods
Perform Allocations
Report & Analyze Define Cost Drivers
Financial Close Process
Data Cleansing Consolidate Internal Reporting & Analysis External Reporting & Compliance Cascade Targets Allocate Resources Forecasting Detailed Budgeting
Planning and Budgeting
Set Strategic Objectives Corporate Development Treasury Strategies Long-Term Planning
Oracle Financial Consolidation and
Reporting Applications & Tools
Purpose Built for Each Step of the Process
Financial Close Process
Data Cleansing Consolidate
Internal Reporting & Analysis External Reporting & Compliance Hyperion Financial Data Quality Management Hyperion Financial Management Hyperion Web Analysis Smart View Hyperion Financial Reporting
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Hyperion Financial Management
FEATURES
• Simple to customize
• Easy to integrate
• Financial Data Quality
• Complete audit trails
• Flexible workflow
• Powerful reporting
• Finance owned & operated
Financial
Consolidation,
Reporting
& Analysis
BENEFITS
• Confidence in the numbers
• Reduce cycle time
• Automate collection &
validation
• Lower cost of compliance
• Speed and agility
Market Leading Performance
Management Applications
PERFORMANCE MANAGEMENT APPLICATIONS Strategy Management Business Planning Profitability Management Financial Reporting & Compliance
EPM Workspace
OLTP & ODS Systems
Data Warehouse
Data Mart SAP, Oracle, Siebel,PeopleSoft, Custom
Business Process OLAP
Fusion Middleware
Business Intelligence Foundation
BI Applications
EPM Workspace
Excel XML
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Hyperion Financial Management
Functional Architecture
Browser/Windows/Smart View
Client
MS Office Integration Data Entry &
Consolidation Formatted Reports Dashboards
Currency Translation
& Eliminations Journals
Role-Based Security
Security
Logs Meta Data Repository
Interoperability
Fail-Over and Load Balancing
Server Data Inter-Company Processing Process Management Line Item Management Custom & Predefined Dimensionality Audit Tracking GAAP IFRS Compliance Rules Engine Data Import/Validation Documents attachments Cell text
Oracle Hyperion Financial
Management
Accelerates Reporting
Cycles and Reduces Costs of Compliance
• Patented financial consolidation
and reporting features
• Complete audit trails, workflow
and validations
• “Smart Dimensionality”
• Flexible “what if” scenario
management features
• Powerful, reporting and analysis
tools
• Full integration with ERP and
other transaction systems
• Easy to customize and extend
• Web-architected
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Oracle Hyperion Financial
Management, Fusion Edition –
New
Features
• New Equity Pick-up Module
• Phased Submissions
Enhancements
• Intercompany Transaction
Enhancements
• Oracle BI Publisher Templates for
System Reports
• Extended Analytics Creation of
Flat Files
• Extended 64 Bit Platform Support
• Drill-through to Oracle EBS
Fundamental Capabilities
Financial data quality management employed to collect, map, validate & move data
Data Integration
Bi-directional capabilities within MS Office suite for real-time, accurate information
MS Office Integration
Workflow, documentation attachments, commentaries, electronic questionnaires, disclosures
Compliance
Multi GAAP capabilities, flexibility, variance analysis, audit trail, intercompany, phased submissions
Consolidation
Most flexible solution in the market, periodic consolidation, segment reporting, fin. intelligence Reporting
DETAIL
CAPABILITY
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Addressing Global Compliance Needs
Autonomy from transaction systems U.S. auditing standards
Multiple organization hierarchies and chart of accounts
Section 401 – Conditions for use of non-GAAP financial measures
Mandatory review/approval procedures Section 404 – Internal control report
Submissions contain audit trail Section 302 – CEO/CFO must certify
Web solution, I/C reconciliation, journals Accelerated reporting
FINANCIAL MANAGEMENT
SARBANES-OXLEY REQUIREMENT
Custom dimensions; financial
intelligence, journals with audit trail Recognition and measurement
IFRS, Multi-GAAP, and local statutory Global Standard, Convergence
Segment reporting, specialized currency, inter-company, disclosures
Consolidation and reporting
FINANCIAL MANAGEMENT
IAS/IFRS REQUIREMENT
Financial Data Quality Management
The Only One of it’s Kind!
SOURCE
SYSTEMS
• Data cleansing and transformation • Task scheduling • Text and document
archive • Audit review • Data staging
• Prepackaged integration • Data loading including
supplemental data, line item detail • Dimensional mapping verification • Process management • Excel • G/L • ERP • Flat files • ETL • Oracle EBS • Hyperion Financial Management • Hyperion Planning • Hyperion Essbase • Hyperion Enterprise • Data Marts
DATA
PREPARATION
SERVER
EPM
SYSTEMS
GUIDED WORKFLOW USER INTERFACE
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Linking Hyperion to Oracle E-Business Suite
Hyperion Financial Management/Planning
Oracle Account Analysis
and Drill-Down
Hyperion – The Heart of Financial
Governance and Compliance
Hyperion Financial Management Hyperion Financial Data Quality
Management Financial and XBRL/SEC
Mgmt. Reporting ERP: Oracle, SAP, Legacy, Other Fusion Middleware Tax Filing Oracle GRC Manager CFO Dashboard Tax Calculations Transactions Oracle/Hyperion Partner CFO CIO Reporting
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